Greater Toronto Area (GTA) home sales, new listings
and home prices were up in July 2023 in comparison to July 2022. On a
seasonally adjusted basis, the market experienced more balance in July compared
to June, with sales trending lower while new listings were up.
“Home sales continued to be above last year’s
levels in July, which suggests that many households have adjusted to higher
borrowing costs. With that being said, it does appear that the sales momentum
that we experienced earlier in the spring has stalled somewhat since the Bank
of Canada restarted its rate tightening cycle in June. Compounding the impact
of higher rates has been the persistent lack of listings for people to purchase
compared to previous years,” said Toronto Regional Real Estate Board (TRREB)
President Paul Baron.
GTA REALTORS® reported
5,250 sales through TRREB’s MLS® System
in July 2023, representing a 7.8 per cent increase compared to July 2022. Over
the same period, new listings were also up, but by a greater annual rate of
11.5 per cent. The MLS® Home
Price Index Composite benchmark was up by 1.3 per cent yearover-year. The
average selling price was also up by 4.2 per cent to $1,118,374 over the same
timeframe.
On a seasonally adjusted monthly basis, the number
of sales trended lower for the second straight month, whereas new listings
trended upward. The seasonally adjusted average selling price edged lower while
the MLS® HPI
Composite benchmark edged higher.
“Uncertainty surrounding the direction of borrowing
costs, jobs and the overall economy has impacted home sales over the last two
months. Over the long term, the demand for ownership housing will remain strong
on the back of record population growth. However, many homebuyers will continue
to be on the sidelines in the short term until the direction of monetary policy
and the economy becomes clearer,” said TRREB Chief Market Analyst Jason Mercer.
“We continue to suffer from a misalignment in public policy as it relates to housing. The federal government is targeting record levels of immigration for the foreseeable future, but we have seen very little tangible progress in creating more ownership and rental housing to accommodate this growth. Population growth is imperative for economic development; however, this growth will be unsustainable if people can’t find an affordable place to live. All three levels of government need to be on the same page to fix this problem,” said TRREB CEO John DiMichele.
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